AB 756, as amended, Chang. Small businesses: civil fines and penalties. penalties: waiver.
Existing law imposes various taxes and fees that are administered by the State Board of Equalization, the Franchise Tax Board, and the Employment Development Department. Existing law authorizes these state agencies to impose fines and penalties for violations of those laws imposing the tax or fee. Under existing law, if the Director of Employment Development finds that any employer, in submitting facts concerning the termination of a specified claimant’s employment concerning unemployment compensation, among other things, willfully makes a false statement or representation, the director is required to assess a penalty against the employer of that claimant in a specified amount.
This bill would
begin delete requireend delete the State Board of Equalization, the Franchise Tax Board, and the Employment Development Department to waive any fine or penalty for violations of the laws that impose a tax or fee, assessed against a small business, as defined, within its first 120 days of operation if certain requirements are met.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 42 is added to the Revenue and Taxation
2Code, to read:
(a) The board, Franchise Tax Board, and the Employment
4Development Department, with respect to the laws administered
5by them that impose a tax or fee,
begin delete shallend delete waive any fine or
6penalty for violations of those laws assessed against a small
7business within its first 120 days of operation if the violation does
8not create a threat to health or safety, does not violate any provision
9of the Labor Code, and was not done intentionally.
10(b) For the purposes of this section, a “small business” is a
11business with 100 or fewer employees.